French police question L'Oreal heiress

26th July 2010, Comments 0 comments

Police probing a financial scandal that rocked President Nicolas Sarkozy's government questioned France's richest woman, L'Oreal heiress Liliane Bettencourt, on Monday, a judicial source told AFP.

Fraud squad officers visited the 87-year-old billionaire for about two hours at her home in the chic Paris suburb of Neuilly, to ask in particular about two Swiss bank accounts and an island in the Seychelles.

Secret recordings of conversations between Bettencourt and her financial advisor appear to show that she had sought to use the Swiss accounts to escape French taxes, while the true ownership of the island is unclear.

The tapes -- made by a butler and leaked to the media -- also suggest that Bettencourt was a generous donor to Sarkozy's 2007 election campaign and to a political association run by his top fundraiser Eric Woerth.

Woerth is now labour minister and formerly, as budget minister, was charged with fighting tax evasion. Both he and Sarkozy have denied any wrongdoing or conflict of interest, and several investigations are under way.

Reports and allegations pointing to Woerth have multiplied in recent weeks but there has so far been no evidence to prove the claims.

Woerth is also due to be questioned by police in the coming days as part of an investigation into allegations of conflicts of interest and tax fraud, judicial sources said.

They said the questioning would concentrate on Bettencourt's tax affairs and not focus in detail on the party funding allegations, which are subject to a separate probe.

Bettencourt's lawyer Georges Kiejman told reporters later that police questioned her for two and a quarter hours and searched some of her offices.

The scandal has hit Sarkozy's party at a delicate time as he pushes through a bill to raise the retirement age from 60 to 62 despite fierce resistance from unions, and as he contemplates the 2012 presidential election.

A government report earlier this month said Woerth did not use his authority in his former post as budget minister to shield Bettencourt, France's richest woman, from the taxman.

Sarkozy nevertheless nudged Woerth to step down as treasurer of the ruling UMP party -- a role that has drawn accusations of a conflict of interest.

Woerth has also been accused of conflicts of interest because his wife Florence worked for a company managing Bettencourt's estate while he was budget minister.

Sarkozy was drawn into the scandal when Bettencourt's former accountant, Claire Thibout, told police the billionairess had contributed 150,000 euros (190,000 dollars) to Sarkozy's campaign in 2007 through his fundraiser, Woerth.

The heiress's daughter, Francoise Bettencourt-Myers, has brought legal action claiming her mother is no longer mentally competent to manage her fortune, which is estimated at about 17 billion euros.

She says her mother is being manipulated by the people around her and accuses society photographer Francois-Marie Banier of using undue influence to get her mother to give him gifts worth nearly one billion euros.

© 2010 AFP

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